Marketing Orientation With In The Renault Company Marketing Essay

Harris (2002, p. 247) Defines Marketing Orientation as "The scope to which an organisation is perceived to do something in a coordinated, customer and competitor-oriented fashion. " Narver and Slater's (1990) also verify there are three proportions of Marketing Orientation, customer orientation, competitor orientation, and interfunctional coordination.

This marketing theory involves three essential steps in being customer-focused. First, the wishes and needs of the customers are researched and diagnosed. Then, the study outputs are analyzed by the marketers and new products are created predicated on the consumer needs. Finally, customer satisfaction is targeted after public recognition and intro of the merchandise is manufactured.

A marketing-orientated business is characterised by various characteristics. The business makes good and extensive use of marketing research, advances new and broad products, highlights product value and benefits, uses product invention methods, and designs supplementary services or customer benefits such as delivery, assembly, guarantee, and credit supply. Each one of these are geared toward customer benefits.

Marketing orientation has three common alternatives which is often adopted with a company and these are sales orientation, product orientation, and creation orientation.

Looking at Renault's orientation, the conclusion that we have made is the fact Renault is a market orientated organisation. The explanation for this final result is Renault is very centered on the needs and needs for the buyer. They have different types of cars concentrating on different markets for their customer base. For example, Clio which is marketed at young adults who may have a low cover purchasing the automobile. On the other side of the spectrum where the Laguna or Megane could be classed as a high specification family car.

Also Renault has several cars in a variety of athletics models. Due to the nature of the business enterprise which Renault is involved with they experienced to diverse the number of car models which they sell due to its competitors. For example Ford and Vauxhall.

Another good example is Renault are in the process of developing hybrid automobiles and electric autos within its car range. According to Renault (2011) the first electric car will be bought from Israel in 2011 and then in other countries. The explanation for this has result from customer demand, consumers are more aware of rises in fuel costs and carbon emissions. This might be a typical example how Renault is a market orientated company.

In conditions of R&D Renault listen to their consumers as different customers have different types of criteria when investing in a car. Mack (1996) areas 'That to bolster customer devotion they entail existing customer in the look of its vehicles'. Regarding to Renault (2011) Renault- Nissan Alliance spend 4 billion Euros on the investment on electric parts. Many Eastern Europe would have another specification of an automobile compared to someone in the united kingdom. For example countries such as Bulgaria and Romania need vehicles that cater for larger young families.

Also some countries might not require a car that includes a soft top anticipated to climate conditions being different compared to a country where the weather is hot. Countries where in fact the weather is continually warm may necessitate cars to own air conditioning. The Renault car called 'Dacia Logan 'has created in 2004, this particular kind of car was created for people in expanding countries of the world. The automobile was first bought from Romania at an extremely cheap price of 5000 Euros and then changed into South America and India after proving a success when the automobile was initially launched. Demographics would play a major role in the R&D facet of the business so Renault would know where and exactly how to market their last end product.

Political Factors:

The political factors in any country are mainly responsible to alter an enterprise environment as company may decide to change its business strategy based on the political scenario of the spot it is based in. The federal government of any country regulates power supply, telecom and postal services and finance.

The following are the political factors that impact Renault within the UK.

Current taxation plan

According to the Trade and Investment minister Digby Jones the UK is now least attractive to work and make investments because of the taxation policy, that was under pressure from opposition to duty rich foreign shareholders doing business in the UK. Thus the labour party proposed a chop on taxing traders who are non-UK domiciled.

Also a well worth talk about is VAT this means value added duty. It is recharged on most goods and services that are VAT listed.

The recent recession has damaged a great deal of businesses most of all the car manufacturing in the UK, it can be seen as going right through a bad stage for the automobile industry. Thus UK engine agency served a budget to the current Government in the UK and urged it to create a right mixture of policies to maintain development in the segment.

Renault made a decision to follow the next steps to counter any future threats when it comes to financial aspect of the same by the next measures

Continue to place pressure on banking institutions to provide more loans

Support automotive council

Freeze petrol duty

Following the Kyoto protocol, more political pressure has been imposed to the polluting companies. Regarding the car market, Governments around the world have established some environmental fines and bonuses to manufacturers and consumers.

For customers, they need to pay a tax to the federal government according to the level of CO2 emissions.

This can have a massive influence for potential buyers, especially with sports car and ones with large motors which are regarded as the most polluting.

Economic factors:

Osbourn (2011) mentions Chancellor of Exchequer made a budget assertion which is intended to reform the country's economy which time the budget is neutral and also becomes where in Europe to get, which is a good sign for car manufacturers as certain taxes applicable have been cut and import duty has been significantly reduced, which is a sign of comfort for car manufacturers.

Godlevskaja et al (2011) state governments: Many OEMs are expanding their model lines to lure new customers and increase overall customer platform range. - Often at their competition' expense. At the same time growth increase is bound within the car mobility industry as a whole. - in the EU new car demand dropped 7. 8 % to 14. 7 million units in 2008 that shows consumer concerns about the market' the buying vitality from consumers this may have been down toward the recession, not surprisingly Renault would constantly market themselves to its potential consumers. Having customer awareness makes people want to buy their vehicles with newer models being introduced.

Sociological Factors:

These factors constitute various public factors such as ethnical aspects, demographics, life-style and behaviour. For e. g. Whatever works in one country may not be successful in other, Renault may sell race cars in France but also for a market like India it requires to establish small cars just as this country small automobiles are much in demand because of the infrastructure of the company and people size.

Demographics

Renault is the third largest car maker on earth with its presence across European countries, Asia and even Africa thus it needs to proactive somewhat than reactive in development in these countries. Its coverage of developing proper alliances with local manufacturers helps it to get an edge in the global situation as locals know their house market better, they use a tried and tested online marketing strategy of focusing on the right market segment to see if it works sells. Such alliances apart from fostering industrial harmony also helps in sharing of technological aspects of each firm, and helps develop new products including the concept of electro-mechanical cars to save lots of petrol and protect the surroundings.

Though Renault is a French company it includes alliances throughout the world that helps it foster multicultural aspects. Where the sentiments of local population are not harm as they continue using the same product such as in case of Romania and Korea. Where in Renault acquired Dacia and Samsung motors respectively. Such alliances also help it to unveiling existing vehicles in one region to the other, also known as market development from Ansoff's matrix. Alez-Aller et al (2010) state governments knowing your customers needs and needs are vital to success to admittance strategy within new areas. In depth evaluation of macro and micro environment is key when consumers are looking to get vehicles.

Technological Factors:

Any company from any sector catering to any portion must change sooner or later, to be able to grow and survive the growing competition from consumers and competition. Godlevskaja et al (2011) state governments: 'Businesses must constantly modify their service portfolios because "it is important for companies to have a dynamic service collection that is adapted to various customer needs'.

Consequently companies that fail to do this lose in the permanent as the outside world is very competitive and brutal to obtaining a position in the market. Companies worldwide spend millions of money just to ensure that they don't lag behind if indeed they lack the technological expertises. Renault (2011) estimates immediately from its website: "Renault is focused on the development and execution of new systems into every aspect of our vehicles. Renault's technicians cover every angle - roadholding, security, comfort, soundproofing, etc. - in their relentless goal to make motoring a wonderful experience".

Porter's five causes research and criticism

In order to stay a strategy, a business must analyse its industry. However the research of its competition is not enough to comprehend all the aspects of the business. The types of businesses are various and numerous. But in virtually all the establishments, Michael E. Porter has recognized a common framework made up by five global forces. These are to take into consideration to be able to implement an effective strategy.

1. The Analysis

For our issue we will consider these five pushes within the car industry designed to the Renault Company.

Rivalry among existing competitors

Strong competition

Very strong competitive rivalry in the vehicles sector, especially with the brands concentrating on a specific market
segment. E. g. Audi have become leaders on high standard quality vehicles, while TATA is starting the reduced cost vehicles segment

The Asian manufacturers have a very strong growth thanks to their low cost autos and their quality car is very reliable. E. g. KIA and their 7 years warrantee.

The structure of the motor vehicle industry is becoming increasingly more powerful because of all the merges and the joint projects, so the competition is strong and intense.

The threat of new entrants

Low threat

Few new brands getting into on the marketplace for these important reasons

The investment that should be made is really important. Especially in the production area of the activity, where in fact the investment must make a difference if the brand wants to get a competitive advantage

The experiment and the know-how are essential elements to get its place on its market, in particular on management of the expenses and the competitiveness.

The competitors already present are already popular brands. All these companies trend to be restructured into fewer big teams. These implicate they are more powerful, nor let possibilities for any small new company to type in the market

The threat of substitute

Mild/ Relative Threat

Even if there will be the other ways of transportation, the automobile remains vital nowadays. It really is true that sometimes changing the transport way can involve some advantages as the cost (with the reduced cost flight carrier), the ethic of environment (with ecological way of transports such as trains or the buses) or time in important factor within lsrger metropolitan areas (with the underground), none of the travel way give you a good mix of "utility, convenience, freedom, and value afforded by automobiles".

Nowadays, the motor vehicle companies have an array of product, which can meet every demand, in adapting their automobiles in satisfying every new need, that increases the devotion of the consumers to work with cars.

Bargaining vitality of the suppliers

Dependence Suppliers/Customer

The purpose is being to establish a profitable, reliable relationship for both parts. However the parts suppliers are occasionally small manufactures so Renault has more pressure to put on its supplier in conditions of price

However the image of Renault, as a reliable car company also is determined by the quality of the car parts

Suppliers are also important to Renault in conditions of costs, matching to Renault (2011): "Suppliers account for 80% of total vehicle development costs. Hence, it is needed for Renault to get their commitment and make them part of its approach to sustainable development"

Bargaining power of the buyers

Strong electric power of negotiation

The individuals are the target of communication promotions and marketing activities because it is more and more lured to try other brands

The last product are standardised, customers can put the pressure on different suppliers insisting on the fact that an equivalent car can be find from another company for about the same price

The negotiation can be in the price, but also on obtaining more options or services with same price. This impacts the costs to organisations

2. Criticism of the Porter's analysis

The three new forces

The Porter analysis remains one of the most influential marketing and strategy tool. However this evaluation has been compiled by Porter through the 1980's, and the economic world has significantly changed during the last decades. Especially due to the Internet and all the e-business that make evolved most of the business.

Larry Downes, co-author of "Unleashing the Killer App: Digital Approaches for Market Dominance" relates in this article "Beyond Porter" that the Porter's five pushes analysis is no longer a whole tool to opt for a viable strategy.

He explains new tactical frameworks constructed by three new factors (forces), which allow to analysis the business area more relevantly

The digitalisation

Due to increase ability of it, new business models will be given birth to from the market. This allowed the global knowing of the consumers on the global market. The rivals will not only participate the same industry. Now the travel operator Thomas Make can be considered a competition of Renault. These two companies will press their clients to work with their money to buy their product whenever there are the same prices

According to Recklies (2008) "The old economy used IT as an instrument for employing change. Today technology acquired become the most crucial drivers for change".

Therefore mindsets have altered for organisations and exactly how they operate; the ultimate end product will demand an factor of technological innovations for it to successful in society due to communal factors.

The Globalisation

The globalisation of the market is nowadays something a company cannot afford to ignore. The effects of the globalisation on companies are betterment in the areas of circulation logistics and communication. The Global companies have to adjust their strategies in function of the global network. These strategies stay more complex than what Porter illustrate. It isn't a question of price or quality for the clients, but trying to reach a kind of loyal romantic relationship with a network of lovers and consumers.

The deregulation

One of the top changes available from the Porter's model is the considering of the intervention of the governments available and in the industries. Because of the action of the expresses (new laws and regulations, new quality requirements, new importation/exportation quotas) the business and the organisations have to adjust their strategies, finding new alternatives to their business models.

These factors became important but they rarely appear in to the Porter evaluation. So an important Company like Renault cannot focus on this tool to create a solid and successful plan. The purpose of the five causes model is to determine the attractiveness of an industry in connection with theses 5 forces. But according to Dagmar Recklies: "In economics, the constellation of factors determines issues like revenue maximisation or supernormal gains. "

So we can conclude that the Porter's five pushes analysis is a technique tool that can be used only knowing its constraints and amongst others tools to be the bottom of the correct strategy.

Place

Jobber (2006) identifies price as 'The agreed value positioned on the exchange by a buyer and seller'. Price is one of the fixed key factors in the marketing combine and should be blended as well as all component of the marketing combination, to generate customer value. It could be argued then that price interlinks with the other components of the marketing combine and must be satisfied by source and demand to achieve its best.

Price in the marketing mix is very important to an enterprise as it can determine if a company is successful or not when selling the product, it could be perceived that price can echo quality when providing to consumers. The price can affect the next areas so it's pivotal to have the right pricing strategy to market the right product.

Price range from the price of production to the organisation and the strategy they use to market the merchandise at a competitive price so consumers decide to use you, alternatively than your competition. The price tag on something can be sold at a cut-price to boost volume of sales. This can be a strategy employed by organisations to get market talk about which can have its advantages and disadvantages. Walker (2006) says 'Having low prices may be perceived by consumers to be low quality'. Organisation may market themselves so they may be seen as obtain revenue on a short term basis. This is where campaign can be interlinked to a prices strategy. Organisations spend vast portions on R&D before setting prices on products. It could be argued that 'companies must price the product in ways which reflects the appropriate position of the merchandise within the market'.

The balance for organisations is to increase profits, but to have a consistent amount of sales. Marketers utilize this strategy as they maybe price orientated within the marketing combine. That's where product development would take place and knowing your target market well.

Renault uses price within the marketing blend perfectly. Throughout its selection of cars they have luxury cars like the Laguna completely right down to the Clio which is targeted on price with zero-maintenance costs. In terms of price to the Renault Clio it could be viewed as being priced very much like its major opponents. Taking into consideration the Vauxhall Corsa, Ford Fiesta and also Peugeot 206.

The rates strategy of the Renault Clio new amounts from around 9, 000 to 19, 000 plus. There are numerous factors that can impact the costs of just one single particular type of car. For instance engine size, motor unit sport version etc. . . The Clio range gets the sport 2000, Dymanique, Gordini and also Bizu. This shows that the product has been diversified to attain maximum price when offering the merchandise to consumers.

Clio Series

Price

Sport 2000

16, 000

Dymanique

11, 000

Gordini

19, 000

Bizu

9, 000

Walker (1996) shows that all the 'competition i. e. Corsa and Fiesta are based throughout the same costing strategy'. It is because the car industry is large and development costs aren't so important and creating the largest profit is much less necessary as it would be for an inferior organisation. The explanation for Clio getting the same charges strategy as its competitors is because it's the only model in Renault range to predominately focus on less expensive with poor from launch. Therefore it needs to compete with its competitors. The Clio model did this perfectly as new models for the Clio were created every couple of years. The Clio has been on the marketplace for over 15 years showing its successfulness to its consumers who are aware of other markets available to them.

The following is a perceptual map of small commercial automobiles sold and its comparability with the Renault Clio. It can be seen that the Clio and Corsa can be located in the same category as each other, as both focus on price mainly. Other small automobiles including Audi and BMW concentrate on both high quality and price as the reputation they have got is that it's a 'long term investment'. The Skoda Fabia is a low priced car due to reputation it organised from its unreliable former, but its reputation has sluggish been built backup.

High Quality

*BMW 1 Series

Audi A4*

*Skoda FabiaLow Price High Price

Vauxhall*

Corsa

*Renault Clio

Low
Quality

Relationships can be built up between your consumer and owner. Mack (1996) says that Renault try and use this strategy whenever you can when selling cars. But why do this? They do that to help make the consumer feel they are really obtaining a personalised service. Some dealerships offer free present as an indirect way of making customers by their product too its opponents. Walker (1998) also says 'This is a vital part of the strategy in helping to persuade customers that we can meet their needs especially focusing on smaller cars'. Nonetheless it can be argued this strategy possibly might not work in society. As many folks are aware the automotive industry is very competitive, it is now quickly cost orientated in particularly marketplaces, indirect costs such as petrol, insurance and taxes.

Trade-off examination could be applied to the Renault Clio. Jobber (2006) says 'Features such as rate, petrol intake, brand and price are located in front of consumers and asked which mixtures they like'. While the Clio Mk 3 had been designed it would have consulted potential buyers, they might have used r&d for this because the automobile was designed to be low priced and wanted as many luxury as is feasible while concentrating on its center competence its price.

However this evaluation can have its limitations. When r&d is taking place respondents may require lots of things but each one of these additions may not be feasible. When asked to purchase the automobile consumers might not be willing to switch money.

Product

Jobber (2006) defines product as "A good service offered or performed by and organisation or specific, which is with the capacity of gratifying customer needs".

To have a highly effective product that consumer's desire, it needs to be prices reasonably and takes a Unique Selling Proposition. (USP) Walker et al (1998) areas there are four elements which creates a sensible and successful marketing mix. These included

Matching customer needs

Need for balance

Creates a competitive advantage

Matches corporate and business resources

The product Renault Clio has historically been targeted at the younger older population who maybe on a budget. The product is an inferior model in comparison to other amounts in Renault yet also delivering nearly all luxury that other models offer. Including air-conditioning, environment control, Bluetooth and satellite navigation, this makes Clio very positive when it advertises the model to its consumers. The Clio then however complies with the criteria place to have a powerful marketing mix.

Jobber (2006) claims that 'Product development is important. As technology and tastes change, products become out of date and inferior compared to those of the competition, so companies must replace them with features that customers value'. The essential feature of the new Clio model is the tom-tom feature. Renault and tom-tom have had to come to an agreement to add the satellite navigation to integrate this within the models. It has given Clio a competitive advantage over external challengers. Developing a competitive advantage enables them to charge a premium price.

However in few circumstances charging a premium price for products can have its down show up. Many consumers might not exactly be prepared to pay extra for products that might not exactly be essential, consequently consumers will move to Clio's competitors like the 206 and Corsa. The balance is conducted by market research to see what consumers want, referring back again to trade off analysis.

According to Renault (2011) Clio is its most successful selection of car across European countries. This is because the product caters for a broad range of markets. The reason behind can be viewed as when looking at the anatomy of the Clio. The main product (I) would be the automobile itself and the way it is strategically costed, as being a low value costed car in comparison to its other autos within its range. The second part would be products that add value to the entire product. Rendering it match customer needs and creating a competitive advantage. This could be as mentioned above, tom-tom, Bluetooth, keyless accessibility system, auto parking assist detectors and warranties. The outer level includes extras which maybe indirectly related to the automobile including after sale support and credit sales. 'Many augmenting features are strongly related to creating a successful relationship between buyer and seller'.

A product life cycle (PLC) can determine where the product is placed within its life. Many company use different ways of pro-long the life span of its product. When a product grows to maximum maturity and sees's signs its declining it then considers using Product/Market Ansoff matrix. This calls for 4 different strategies that can be used

Product development

Diversification

Market penetration

Market development

The reason for this is to maximise earnings for Clio. Renault Clio mainly uses product development to improve its model throughout years so customers contain the opinion of updating and maintaining trends somewhat than going to opponents.

When the Clio was first launched it definitely starts in the introduction period of the PLC and is strategically listed high. Jobber (2006) expresses that 'the Strategic marketing goal is to generate sales by widening the market for the product'.

The growth stage is next to follow, there is increase of sales and income growth. The explanation for this is because of increase in advertising by creating recognition. Renault Clio use Television set advertising predominately to permeate the market. They also have their own Renault Tv set channel.

The maturity level is where in fact the product sales are in its peak whilst time is increasing. That's where the organisation may offer discounts or extra such as guarantees. That is also the point where product improvements take place at the optimum of the maturity stage. The reasons for this include

Maintain competitive advantage

Future growth

First move advantage

The decline level is the ultimate procedure for the PLC, the reason for this according to Walker (1998) is because of 'scientific superior substitutes' and also consumers change in preferences scheduled to competition.

The Renault Clio was an innovation that Renault developed scheduled to competition from its competition. Matching to Bloomberg Businessweek (2006) Renault was at quantity 49. Its competitors did not even reach the most notable 100 of innovated companies. Other automotive companies included within the list less than quantity 49, Nissan and Volvo. This information could now be argued because companies such as Ford, Volkswagen and Toyota are a lot more innovated in 2010 2010 as they are suffering from autos whilst considering external factors like the environmental factors. (Development of the Cross types car)

Distribution Mix Marketing

The distribution insurance policy includes all decisions and actions that can be related to the delivery in our product to the customer.

There are two different ways of circulation existing for Renault's company.

Business to Business (B to B) = Company Dealer Consumer

Business to Consumer (B to C) = Company Consumer

Engineering

Renault is one of the primary car market sectors worldwide. It is present through the earth in around 201 countries, including European countries, North, Central and South America, Africa, Asia and Oceania.

An international anatomist; nearer to the market segments.

The Techno Middle (France)

Engineering:

The Renault Group is deployed globally. It revolves around two components

Engineering Central, the heart and soul of the system and regional executive spread over Renault's proper markets.

Engineering centers

The Techno Center (France), the heart and soul of the anatomist world

Renault Technology Americas

Renault Solutions Romania

Renault Technologies Spain

Renault Samsun Technical Center

This organisation is based on a standardised procedure for engineering at Renault World of unified complex standards, defining key functions and technological harmonisation of guidelines.

A well-developed network of design centers

Renault Design America Latina in Sao Paulo

The group relies on a parallel network of five 'satellites' design centers.

Observatories real developments these appearing centers of vehicles for new market segments.

They are participating from the introduction of a fresh project to the production of the ultimate strategy car.

The design centers are

Renault Design Paris

Renault Design Central Europe

Renault Design America Latina

Renault Samsung Design

Renault Design India

Two goals are

Warranty the best client satisfaction all over the world

Produce near the markets

Renault's industry realises two type of sell: Either to the clients or even to companies.

But, all confounded, Renault has realised for the entire year 2010 reporting record sales volumes with 2. 6 million vehicles sold. Thanks to its setting, essentially outside Europe, in the growing countries, Renault has bounded its sales. Here's a graph which represents the market where Renault is present in 2010

From: Renault Website

It is important to understand that the Clio is one of the better vehicles brand for Renault.

In about 20 years, it has triumphed in more than 10 million customers about the world (100 countries). This success is thanks to a styling, comfort, protection, versatility and different equipment package worthy of cars from the next segment up.

Renault Feb 2011 sales in European countries region

In February 2011, by Renault (2011) Website, its sales symbolize in Europe 28, 350 vehicles sold, this implies 29. 74% are Clio's models.

Renault February 2011 sales in Worldwide region

In the following table are the most popular diverse ways to advertise the Clio model

Place

Advantages

Drawbacks

Car Dealerships

This is the most profitable syndication channel for the automobile market.

Customers, generally, come in this kind of sales area because they have got, in front of them, any professionals.

The car Dealerships can ensure a warranty on the automobile during one area of the life cycle.

There are many small storage which sell, also, the same vehicles but less expensive.

The occasion's sales tend to be profit for customers.

There is a need in successful logistic.

Internet

This way is not frequently used as the consumer prefers to start to see the tangible product before exchanging money.

Industry

We can offer a good price because the client will be directly at point of sales.

Few customers utilize this way

Car show

Good spot to converse on the new products: 'New Clio'

Good way showing our presence to advertise.

Don't realize any sales but we can merely to take any contacts.

We can easily see that the best method to advertise vehicles is to dealerships. This symbolizes nearly all sales from Renault's industry, about 95%.

For the future, maybe the sales by internet will be most significant. This strategy would be ideal for both the company and consumer as cost benefits methods could be allocated. Presently customers can view Clio's online and booklet try and go to dealership to recognize the sale agreement.

PROMOTION Combine MARKETING

To achieve a good technique to
promote its cars, in particular, the Clio's model, Renault has, always, used the communication through different countries.

It can conform the advertising or the way to promote its car if it's in a single country or another.

The communication policy helps to

Improve the image and reputation of the company or the style of car

To affect the people's attitude and behavior towards cars

To improve a competitive advantage

The communication combine offers several different instruments to achieve the focuses on from above. But there only effective if they are being used in the right phase of the product life pattern. (PLC)

Reminder

Advertising

Persuasive

Advertising

Informative

Advertising

Clio is in the maturity stage of the merchandise Life Cycle. The primary focus on in this phase is to change the price and promotion to increase the life of product. If we describe it in the form of the AIDA communication we have to have the attention and interest of the folks.

Communication Model AIDA

We have to design a position which we offer our vehicles to the car dealerships, that will catch the interest and interest of people. The best way to accomplish that is showing a high picture of the animal stuck in a clear plastic handbag on our position which get underlined by our marketing concept: Quality rescues our environment!!!!

The picture will create an outrage at people and can cause an over considering their current shopping behaviour. That is all we want to achieve to get attentions and interests about environmental issues.

Another way to have the attention of men and women is to get prominent people to use our shopping bag. Of course we know that it could be difficult to encourage well known individuals to do that, but there are different characters that are involved in the environmental talk. They can be persuaded easier because our bag will support their behaviour towards the environment and we would get a confident advertising without spending great money. It really is a win win situation for both factors.

Celebrities can support our vehicles to become prestige car. Thanks to them we can catch the attention of consumers.

Sponsoring Support

Source: Compucars/ Autochannel

Another opportunity to catch the interest of people will be with advertising in periodicals, magazines and with posters. Renault, for its autos, uses the ways to capture the attention of individuals. For example, for the new Clio, Renault is in the Introduction level in the Campaign through Product PLC. Renault must develop a good campaign to increase car sales.

When the car 'Clio' will be in the Growth Level of the PLC, then, Renault must do persuasive advertising to improve the brand commitment of customers. Within the AIDA this would create desire and drive the visitors to action.

Communication Mix

We can choose different advertising channels; Renault must consider advantages and disadvantages of each media before start.

Below, you will find a summary table of disadvantages and advantages for the Media and None Mass media, which will be the basement of Renault's decisions.

Support

Advantages

Disadvantage

Media

Press

- Potential customer

- Reader Loyalty

- High price

- Low impact, meaning needs to be repeat lot of times

Radio

- Good targeting for Clio

- Big sample of people listening in the worldwide

- People are not concentrated

- High price

- Low impact, subject matter must be repeat, also, great deal of times

Cinema

- Great attention of the spectators, good impact

- Very high price

- Small test of people

Outdoor advertisement

- Important test of men and women touched

- Large selection of support

- High price

- Difficulty of targeting

- Weakened measurable impact

None Media

Point of purchase

- Active image

- Quick come back on investment

- Creation of a data base of prospects

- Low price

- Need to be creative with good support

- Well organised

- Assistance with retailer

Internet

http://www. renaultshop. com

- Creates interactivity

- Gives whole lot of information

- Touched a sizable test of people

- No geographic limits

- 39% of home in UK don't possess internet for example

Public relations

- Nearly free of charge

- Effect on tons of customers

- Expensive

- Difficult to have a good relationship with journalist however the Prestige of the brand can bring to succeed

Sponsoring

- Great way to launch a product with a comparatively low budget

- Importance to choose well your sponsor because of the impact on image brand

Direct Marketing

- Quick go back on investment

- Create a link with the customer

- Require a good data basic (good information)

- Make a good follow-up

We have analysied different programs of communication and on this bottom part Renault uses for Clio about each one of these channels.

Budget:

Renault's headquarter gives to all or any its car dealerships a budget to speak the Clio. It is, in general, the communication's service from headquarter which talk on a countrywide point of view. But every year, and in advertising equation with the result of sales for every single period (quarterly or annually), the headquarter helps the automobile dealerships to speak on the merchandise, giving a budget, pretty much important to succeed to acquire good effect for another periods.

We can notify that the three mains works with of communication are TV with ads, Outdoor advertisings with billboards, and the Newspapers. About all budgets is consecrated for these programs.

The mains channels

As the problems continued to hit with full push the automobile industry, Renault has released, it would keep its about 600 million euros assigned to communication for 2010 2010.

In 2008, Renault has launched because of its reports car 20 advertising campaign in more than 80 countries, with a new slogan for Clio. Since this period, Renault has substantially increased his brand's image in Europe.

TV ads

Renault communicates upon this route because we can record a lot of folks through these advertising.

This channel presents for Renault this year 2010 about 65%.

And by Renault website, we realize that Renault has used about 20% of budget to connect on the new CLIO, including 13% with Tv set ads and the rest with different ways. This performance brings Clio in the surface of the rank of sales for the first a few months of 2010, and the same for 2011. From the world, Clio remains the automobiles the most sold follow by Megane. In European countries, Megane is just before Clio in the ranking.

http://www. youtube. com/watch?v=B0tkN8WQDvA

http://www. youtube. com/watch?v=_r8LHP4nY30

These links are few examples of advertising with TV support.

The goal of Renault is to focus on TV media because more than the half acquisitions has been concentrated on this canal. Also, Renault has launched a web-based Television set channel translated in France and English. It's the first brand which launches its own channel around the world, shown on the route Sky Guide 883 in UK. This program includes a big choice of information on the Renault's range and of course the Clio.

Sponsoring

Renault uses different varieties of sponsoring to converse on its autos. The celebrities are a good target to convey a good image and also to increase the brand, and the car's value. That is important for an industry like Renault because famous movie star similarly quality brand.

And, also, focuses on the image in sportive occurrences like the Method 1 for example. Watched by millions of individuals through the earth, you can, because of the sponsoring, connect immediately with people.

Launched in the sport like here with the Solution 1, Renault spends much money however in 2010 they have elected the winners of world cup. It desires to keep the pressure for 2011. This image, this prestige will allow to Renault to build up a fascinating communication over its whole range of automobiles.

And indirectly, Renault communicates on the Clio, because people who wish to buy Renault, they'll go to see the others models.

Other partnerships have been signed. The first one is with yachtswoman Ellen MacArthur who symbolises Renault's durability to the environment through Renault eco label. The second one is with Electronic Arts to place New Megane Coup in a single position of the very most famous car race video games. Because of that, you can concentrate on new customer sections.

Each year as well as for the 11th consecutive, Renault can be an official spouse of the Deauville North american Movie Festival. The brand offers a fleet around 15 Laguna to escort jury customers and stars on the red carpet. It is a major event showing its presence.

Internet

Renault, since 2007, attempts to build up its strategy on internet. Between 2007 and 2009, Renault has doubled its investment in web advertising. Which means that The Group starts to have a fine place, a good position on the web market. Renault, in '09 2009, has launched the first shop website in France and Spain and by the end of 2010; it was the change of UK, Italy and Germany.

This way is easier to have a first contact and to see the various range of products.

Example of Advertising on internet for Turkey

In summary to Renault Clio's product phase in the marketing blend, it could be seen as being a very successful within European countries with it being one of Renault's best vendors in Europe. The car has many successful competences including in build tom-tom and cellular connectivity, making it technical advanced. This frequent change in technology bring healthy competition for the consumers as they can shop around to see which vehicle best meet their personal standards. From personal interpretation on Clio's model it been seen at the peak stage of maturity, which constant adaption bringing product improvements to remain competitive. Price is one of the major factors when it comes to delivering the merchandise to the buyer, with no the right costs strategy the merchandise may not be successful on release. Renault Clio can general be seen as a car marketed at a low cost and poor, (in terms of extras) so when advertising the car client satisfaction performs an important area of the supply string when offering the Clio. Promoting the merchandise as the right price is key, as this is vital to communicate to consumers. Renault use several ways to market its product itself, the most appropriate would be observed within car dealerships. When promoting the Clio the PLC can be considered, when new models are launched marketing is in the release phase to get consumer awareness and during the course of its life will learn to drop so marketing decreases so Renault may create new models and entice customer attention away from the old models and persuade those to choose the newer model.

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.